Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Union Solidarity Fund to provide assistance to Italy
Date: 2017-06-26
Institutions: Directorate-General for Budget, European Commission
Subjects: Abruzzi, Italy, Latium, Marches, Umbria, aid to disaster victims, commitment of expenditure, earthquake, fund (EU), general budget (EU)

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   EUROPEAN COMMISSION  Brussels, 26.6.2017  COM(2017) 540 final   Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Union Solidarity Fund to provide assistance to Italy  
 
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

This decision covers the mobilisation of the European Union Solidarity Fund (EUSF) for an 
amount of EUR 1 196 797 579 to provide assistance to Italy further to a series of earthquakes 
that  took  place  between  August  2016  and  January  2017  in  the  regions  of  Abruzzo,  Lazio, 
Marche  and  Umbria.  This  mobilisation  is  accompanied  by  Draft  Amending  Budget  (DAB) 
No 4/20171  that  proposes  to  enter  the  necessary  appropriations  in  the  general  budget  2017, 
both in commitments and payments, after having deducted the advance already paid in 2016 
(EUR 30 000 000).  

2. 

INFORMATION AND CONDITIONS 

On 16 November 2016 the Commission received an initial application for financial assistance 
under the EUSF, in relation to a series of earthquakes affecting the regions of Abruzzo, Lazio, 
Marche  and  Umbria,  after  the  first  damage  was  recorded  on  24  August  2016.  This  initial 
application was incomplete as a second series of earthquakes at the end of October 2016 had 
occurred and the evaluation of the additional damage still had to be performed. On 18 January 
2017,  shortly  before  the  intended  submission  of  the  updated  application  a  third  series  of 
severe  earthquakes  occurred.  Consequently,  on  15  February  2017  the  Italian  authorities 
presented  an  updated  application  with  revised  estimates  including  all  damages  caused 
between 24 August 2016 and 18 January 2017. 

The Commission examined this application in accordance with Council Regulation (EC) No 
2012/2002 of 11 November 2002 establishing the European Union Solidarity Fund2 (hereafter 
"the  EUSF  regulation"),  in  particular  with  Articles  2,  3  and  4  thereof.  The  most  important 
elements of the assessment are set out below. 

(1) 

(2) 

(3) 

(4) 

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2 

During  the  period  between  24  August  2016  and  18  January  2017,  a  series  of  strong 
earthquakes with magnitudes ranging from 5.9 to 6.5 in the Richter scale, followed by 
a multitude of aftershocks, affected wide areas of the Apennines chain in Central Italy, 
in particular the regions of Abruzzo, Lazio, Marche and Umbria.  

Earthquakes are of natural origin and therefore fall within the main field of application 
of the EUSF. 

The  application  from  Italy,  initially  received  on  16  November  2016,  was  within  the 
deadline of 12 weeks after the first damage was recorded on 24 August 2016. In their 
application,  the  Italian  authorities  stressed  that  the  assessment  of  the  damage  was 
incomplete and  that  the  relevant  figures  were  only  provisional.  The  final  application 
file  was  completed  on  15  February  2017  to  include  the  damages  occurred  between 
between 24 August 2016 and 18 January 2017. 

the  EUSF  regulation.  On  29  November  2016 

In its application, Italy requested the payment of an advance as laid down in Article 4a 
of 
the  Commission  adopted 
Implementing  Decision  C(2016)  7861  awarding  EUR 30 000 000  in  advances  (the 
maximum  amount  allowed  under  the  provisions  of  the  EUSF  regulation)  from  the 
anticipated financial contribution of the EUSF and subsequently paid it out in full to 
Italy. 

COM(2017) 541, 26.6.2017. 
Council  Regulation  (EC)  No  2012/2002  of  11  November  2002  establishing  the  European  Union 
Solidarity Fund, (OJ L 311 of 14.11.2002, p. 3) as amended by Regulation (EU) No 661/2014 of the 
European Parliament and of the Council of 15 May 2014 (OJ L 189 of 27.06.2014, p.143). 

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(5) 

(6) 

(7) 

(8) 

(9) 

The Italian authorities have estimated the total direct damages caused by the disaster at 
EUR 21 878,8 million. This amount represents 1,36 % of Italy’s GNI, and exceeds the 
'major disaster' threshold for mobilising the EUSF of EUR 3 312,2 million applicable 
to  Italy  in  2016  (i.e.  EUR 3 billion  in  2011  prices).  As  the  estimated  total  direct 
damage exceeds the 'major disaster' threshold, the disaster qualifies as a “major natural 
disaster”.  

As regards the impact and consequences of the disaster, the earthquake of 24 August 
2016  caused  299  casualties  and  390  people  were  hospitalised.  The  earthquakes  in 
October did not lead to casualties. The events in January caused 34 further casualties. 
The number of population assisted in the months following the shocks of 26 and 30 
October  2016  reached  its  peak  on  7  November  with  nearly  32 000  people  assisted. 
Thousands of people needed to be evacuated, including patients from the hospitals in 
the  Umbria  region.  On  8  November  2016,  the  assisted  population  exceeded  30 000 
units  in  the  area  of  the  four  affected  regions,  whereby  about  11 000  were  housed  in 
hotels and accommodations both in the territories directly affected along the coast of 
the  Marche  and  in  the  hinterland  of  Umbria,  while  other  people  were  sheltered  at 
public  facilities  made  available  by  the  municipalities.  The  area  already  severely 
affected by the events of August and October, was hit by further seismic events on 18 
January  2017  and  heavy  snowfall  led  to  the  isolation  of  numerous  villages  in  the 
Abruzzo  region  and  caused  significant  harm  to  the  living  conditions  of  the  affected 
population. The search and rescue operations turned out to be extremely complex.  

The  area  affected  by  the  earthquake  of  24  August  2016  is  mainly  characterised  by 
agricultural  and  tourism  businesses.  The  structures  of  many  farms  were  damaged 
(barns,  warehouses  and  equipment  remittances).  In  the  affected  areas  of  the  Marche 
and Umbria regions, the number of services and industrial enterprises is considerably 
higher than in the rest of the affected areas. The damage to businesses in these regions 
is  quite  significant.  Furthermore,  the  seismic  events  have  had  very  negative 
repercussions on the tourism sector that was thriving in the whole area. A big number 
of  holiday  homes,  located  in  national  parks,  was  significantly  damaged.  As  the 
earthquakes hit many medieval mountain towns, the damage to cultural heritage sites 
is significant. For instance, the Amatrice town centre was destroyed after the shocks of 
24  August.  The  earthquake  of  30  October  destroyed  the  14th-century-Basilica  of  St. 
Benedict in Norcia.  

The cost of essential emergency and recovery operations eligible under Article 3(2) of 
the  EUSF  Regulation  has  been  estimated  by 
Italian  authorities  at 
EUR 2 149 363 344 and has been broken down by type of operation. The largest share 
concerns  the  costs  for  restoration  to  working  order  of  infrastructure,  in  particular 
roads, followed by the costs of the rescue services and for temporary accommodation.  

the 

The affected regions are "transition and more developed regions" under the European 
Structural  and  Investment  (ESI)  Funds  (2014-2020).  The Italian  authorities  signalled 
to  the  Commission  their  intention  to  reallocate  funding  from  the  ESI  Funds 
programmes towards recovery measures. 

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(10)  As  regards  the  implementation  of  Union  legislation  on  disaster  risk  prevention  and 
management, there is currently no infringement procedure on-going. Italy reports that 
there is no specific Union legislation on seismic risk. However, within the framework 
of  the  Union  civil  protection  legislation3,  Member  States  shall  develop  risk 
assessments  at  national  or  appropriate  sub-national  level  and  make  available  to  the 
Commission  a  summary  of  the  relevant  elements  thereof  by  22  December  2015  and 
every  three  years  thereafter.  Italy  is  compliant  with  this  provision  and  already 
submitted  to  the  European  Commission  (DG  ECHO)  its  National  Risk  Assessment 
Overview. 

(11)  At  the  date  of  submitting  the  application  Italy  was  not  subject  to  infringement 
proceedings concerning Union legislation relating to the nature of the disaster. 

(12)  The Italian authorities confirmed that there is no insurance coverage of eligible costs. 

3. 

FINANCING FROM THE EUSF ALLOCATIONS 2016, 2017 AND 2018 

Council Regulation (EU, EURATOM) No 1311/2013  of 2 December 2013 laying down the 
multiannual financial framework for the years 2014-20204 (hereafter "the MFF regulation"), 
and in particular Article 10 thereof allows for the mobilisation of the EUSF, within an annual 
ceiling of EUR 500 000 000 (2011 prices). Point 11 of the Interinstitutional Agreement of 2 
December  2013  between  the  European  Parliament,  the  Council  and  the  Commission  on 
budgetary  discipline,  on  cooperation  on  budgetary  matters  and  on  sound  financial 
management5 (IIA) lays down the modalities for the mobilisation of the EUSF. 

As solidarity was the central justification for the creation of the EUSF, the Commission takes 
the view that aid should be progressive. That means that, according to previous practice, the 
portion of the damages exceeding the “major disaster” threshold for mobilising the EUSF (i.e. 
0,6 %  of  GNI  or  EUR 3 billion  in 2011  prices,  whichever is  the  lower  amount)  should  give 
rise to higher aid intensity than damages up to the threshold. The rate applied in the past for 
defining  the  allocations  for  major  disasters  is  2,5 %  of  total  direct  damages  under  the 
threshold  and  6 %  for  the  part  of  the  damages  above.  For  regional  disasters  and  disasters 
accepted under the “neighbouring country” provision the rate is 2,5 %. 

The  contribution  may  not  exceed  the  estimated  total  cost  of  eligible  operations.  The 
methodology for calculating the aid was set out in the 2002-2003 Annual Report on the EUSF 
and accepted by the Council and the European Parliament. 

On the basis of the application from Italy, the calculation of the aid from the EUSF, based on 
the estimate of total direct damages caused is as follows: 

Disaster 

ITALY  

TOTAL 

Total direct 
damages     

Major disaster 
threshold 

2,5% of direct 
damages up to 
threshold  

6% of direct 
damages above 
threshold 
(EUR) 

Total amount 
of aid proposed 

(million EUR) 

(million EUR) 

 (million EUR)                                                           

(EUR) 

21 878,767 

3 312,242  

82 806 050  

1 113 991 529 

1 196 797 579 

1 196 797 579 

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4 
5 

Decision No 1313/2013/EU of the European Parliament and of the Council of 17 December 2013 on a 
Union Civil Protection Mechanism (OJ L 347, 20.12.2013, p. 924), Article 6. 
OJ L 347, 20.12.2013, p. 884. 
OJ C 373, 20.12.2013, p. 1. 

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The  total  amount  available  for  the  mobilisation  of  the  EUSF  at  the  beginning  of  2017  was 
EUR 1 115 121 612,  being  the  sum  of  the  2017  allocation  of  EUR 563 081 210  (i.e. 
EUR 500 000 000  in  2011  prices)  in  accordance  with  Article  10(1)  of  the  MFF  regulation, 
plus  the  entire  2016  allocation  of  EUR 552 040 402  (i.e.  EUR 500 000 000  in  2011  prices) 
that remained unspent and was carried over to the following year, in accordance with Article 
10(2) of the MFF regulation. 

The amount that may be  mobilised at this stage of the year 2017 is EUR 902 826 499. This 
corresponds to the total amount available for the mobilisation of the EUSF at the beginning of 
2017  (EUR 1 115 121 612),  minus  the  previous  mobilisation6  (EUR 71 524 810),  minus  the 
retained amount of EUR 140 770 303 in order to respect the obligation of keeping aside 25% 
of the 2017 annual allocation until 1 October 2017 as stipulated by Article 10(1) of the MFF 
regulation.  

This amount is not sufficient to cover the full mobilisation of the EUSF for Italy. However, 
the Commission considers that the conditions under Article 10(2) of the MFF regulation are 
fulfiled and proposes to cover the difference of EUR 293 971 080 (EUR 1 196 797 579 minus 
EUR 902 826 499 under 2017 budget allocation) from the annual amount available in 2018. 

EUSF financing summary table 

2016 allocation carried forward to 2017 

2017 allocation 

Total available at the beginning of 2017 

Minus already mobilised in 2017 

Minus 25% of the 2017 allocation retained 

Maximum amount currently available  (2016+2017 allocations) 

Remaining balance frontloaded from the 2018 allocation 

Total amount of aid proposed to Italy 

Amount 

EUR 

552 040 402 

563 081 210 
---------------- 

1 115 121 612 

-71 524 810 

-140 770 303 
---------------- 

902 826 499 

293 971 080 

1 196 797 579 

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Decision  (EU)  2017/741  of  the  European  Parliament  and  of  the  Council  of  5  April  2017  on  the 
mobilisation of the European Solidarity Fund to provide assistance to the United Kingdom, Cyprus and 
Portugal  (OJ  L  111,  24.4.2017,  p.  6)  and  the  accompanying  Amending  Budget  No 1/2017  (OJ  L  136, 
24.5.2017, p. 1). 

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Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the mobilisation of the European Union Solidarity Fund to provide assistance to Italy 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, 

Having regard to Council Regulation (EC) No 2012/2002 of 11 November 2002 establishing 
the European Union Solidarity Fund7, and in particular Article 4(3) thereof, 

Having regard to the Interinstitutional Agreement of 2 December 2013 between the European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline,  on  cooperation  in 
budgetary matters and on sound financial management8, and in particular point 11 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

The European Union Solidarity Fund (the "Fund") aims to enable the Union to respond 
in  a  rapid,  efficient  and  flexible  manner  to  emergency  situations  in  order  to  show 
solidarity with the population of regions struck by natural disasters.  

The  Fund  is  not  to  exceed  a  maximum  annual  amount  of  EUR 500 000 000  (2011 
prices),  as  laid  down  in  Article  10(1)  of  Council  Regulation  (EU,  Euratom)  No 
1311/20139. The entire 2016 allocation remained unspent and was carried over to the 
following  year,  in  accordance  with  Article  10(2)  of  the  MFF  regulation.  The  2017 
allocation was not yet drawn on. 

 (3)  On 16 November 2016, Italy submitted an application to mobilise the Fund, following 
an earthquake that affected the regions of Abruzzo, Lazio, Marche and Umbria on 24 
August 2016. Additional earthquakes struck the previously hit areas and significantly 
increased  the  level  of  previously  reported  damage.  Italy  then  submitted  its  final 
application on 15 February 2017 with revised estimates including all damage caused 
between 24 August 2016 and 18 January 2017. 

(5) 

(7) 

(8) 

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The  application  by  Italy  meets  the  conditions  for  providing  a  financial  contribution 
from the Fund, as laid down in Article 4 of Regulation (EC) No 2012/2002. 

The Fund should therefore be mobilised in order to provide a financial contribution to 
Italy. 

Since the amount that may be mobilised for 2017 does not cover the full contribution, 
the  difference  should  be  financed  through  the  annual  amount  available  for  2018  as 
provided for in Article 10(2) of Regulation (EU, Euratom) No 1311/2013. 

OJ L 311, 14.11.2002, p. 3. 
OJ C 373, 20.12.2013, p.1. 
Council  Regulation  (EU,  Euratom)  No  1311/2013  of  2  December  2013  laying  down  the  multiannual 
financial framework for the years 2014-2020 (OJ L 347, 20.12.2013, p. 884). 

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(9) 

In order to minimise the time taken to mobilise the Fund, this Decision should apply 
from the date of its adoption, 

HAVE ADOPTED THIS DECISION: 

Article 1 

For  the  general  budget  of  the  Union  for  the  financial  year  2017,  the  European  Union 
Solidarity  Fund  shall  be  mobilised  to  provide  the  amount  of  EUR  1 196 797 579  to  Italy  in 
commitment and payment appropriations. 

Article 2 

This Decision shall enter into force on the day of its publication in the Official Journal of the 
European Union. 
It shall apply from … [the date of its adoption]. 

Done at Brussels, 

For the European Parliament 

For the Council 

 Date to be inserted by the Parliament before the publication in OJ. 

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